Economic Consultancy Services (TECS) in its interim report
has recommended the formulation of an integrated industrial
area and infrastructure development act for the development
of the proposed special economic zone (SEZ) at Dronagiri
in Navi Mumbai.
City Industrial and Development Corporation (CIDCO) officials
say TECS, which was appointed by CIDCO to prepare an interim
report on the viability and prospectus of the proposed
SEZ, also recommends a separate section dedicated to tax
holidays and tax-break schemes, simple and effective regulatory
mechanisms and the formation of a public-private partnership
for the development of the proposed SEZ.
is the implementing authority of the SEZ. The SEZ, which
is to come up over 704 hectares at Dronagiri, is expected
to produce an output of $1.4 billion by 2008, the officials
TECS says the formulation
of the act will provide the umbrella framework under which joint
ventures with foreign strategic investors and the new management
of the SEZ can be formed. It has recommended the formation of a
special purpose vehicle (SPV) to act as a planning and development
The legal empowerment of
the SPV to undertake the development of an SEZ could be through a
contractual arrangement between the Maharashtra state government,
CIDCO and the SPV.
has also suggested the extension of the tax holiday scheme for 20
years with 100-per cent exemption facility for Dronagiri SEZ and
has also recommended automatic 100-per cent foreign direct
investment clearance to the entire range of activities perpetuated
under the SEZ. Besides, TECS has called for an adoption of public
private partnership structure for development and management of
the Dronagiri SEZ, the official add.